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Annual Board Reporting

The safe and sound use of BOLI depends on effective senior management and board oversight. Annually, EBS will provide to bank management an analysis including the following items to present to the Board of Directors or appropriate Board level committees to allow them to again review the risk characteristics of the institution’s insurance holdings and the role this asset plays in the institution’s overall business strategy:

• Review of the risks identified in the Pre-Purchase Analysis
• Identification of which employees are or will be insured
• Assessment of death benefit amounts relative to employee salaries
• Calculation of the percentage of insured persons still employed by the institution
• Evaluation of material changes to BOLI risk management policies
• Assessment of the effects of policy exchanges
• Assessment of mortality performance and impact on income
• Evaluation of material findings from internal and external audits and independent risk management reviews
• Identification of the reason for and tax implications of any policy surrenders
• Review of peer analysis of BOLI holdings